Smartphones, arguably, are the most important gadgets technology has gifted man for the early 20th century. Having a computer that fits in your pocket, and has a processing power better than onboard computers used in space ships in the 70s is no weak deal. That said, as phones have become smarter, aesthetic Darwinism has dictated that they become more fragile.

Most smartphones, even mid rangers, sport a glass sandwich design, which means both the front and the back are made from glass. And this glass, although seemingly scratch proof, isn’t shatter proof. Smartphones are also fragile in terms of water and dust damage, and even costly phones with official protection ratings can often get damaged. That apart, smartphones also come with a lot of fragile and small mechanical parts like pop up cameras, that can malfunction as they age. Finally, smart phones, being such useful and costly devices, often get stolen, or lost.

Thus, in order to protect our valuable assets, people often consider ensuring their smartphones for an additional cost, so that once they’re broken or lost, repairing or renewing them doesn’t cost them as much as a brand-new phone. Here are some interesting facts about phone insurance:

What does phone insurance cover?

A mobile phone insurance can potentially cover a lot of things, such as:

  • Loss
  • Theft
  • Damage
  • Mechanical malfunction
  • Extension of warranty
  • Damage not covered by warranty

Deductible headaches:

It is important to note that most mobile insurance that costs a reasonable amount actually just covers your insurance. It is just enough to keep the insurance running. Most insurance companies will ask you to pay a deductible every time you plan to use the insurance. This is specifically true for costlier phones such as iPhones or the Samsung Galaxy S or Note series, since these are bound to be stolen more and also just have a higher asking price.

Pay-outs:

The main purpose of insurance is to be paid for your claims when the need arises. However, insurers are becoming stringier with payment. While insurance sales keep on increasing, the outflow from these companies is embarrassing, to say the least. Thus, insurance might seem futile if you can’t end up claiming the money at all.

It isn’t rare to see insurers flat out refuse to pay you for loss or theft that happened because you were careless with your phone, or you left it in a cab for example. In fact, a lot of insurers do not even cover theft and loss, and quite adeptly do not mention the same explicitly in their initial deal. For example, AppleCare+ extends your phone warranty further but doesn’t cover theft.

Limitation to claims:

The original deal often limits the number of claims one can make to 2 to 3 per year. Thus, if you’re really clumsy with your phone, it is essential to take note of this fact, and try for insurance that has a higher cap to the number of claims you can file. In fact, you can even try and opt for more than single insurance if it is worth your money and if you feel the cap on one isn’t enough for you.

Conclusion:

The key takeaway is that phone insurance, unlike health or car insurance isn’t an absolute necessity. There are definitely benefits to ensuring your phone, and it is especially convenient for those that can’t seem to be more careful with their phone use, or just work in environments that are bound to damage modern fragile gadgets. There is also a clear-cut benefit in terms of peace of mind, since you don’t have to shell out extra cash for repairing your costly iPhone, which would cost as much as a mid-range phone sometimes.

That said, it is also important to note that phone insurance might be unnecessary for most people. Most people do not end up losing their phone, and phones can be protected with covers and screen guards to avoid or minimise structural damage. In fact, most phone ownerships might just be too uneventful to justify spending insurance money. Insurance also has several red flags such as lethargic pay outs and deductibles, that make the experience difficult. Thus, if you do plan to get insurance, we’d recommend approaching a few different insurers, going through their plans in detail, asking their agents the questions we have pointed out and then making your decision. This makes the insurance experience seamless and worthwhile.

Street Photography